Authorizes creation of additional urban enterprise zones.*
What changed between versions
The bill now authorizes two additional enterprise zones instead of one. The total maximum number of zones in effect at any time increases from 33 to 34, and the count of additional priority-consideration zones increases from 10 to 11.
A new paragraph (11) adds criteria for a second zone: a qualifying municipality with a poverty rate of at least 12 percent per the 2026 Municipal Revitalization Index, population between 45,000 and 47,000, in the first-class county with the highest population.
The existing paragraph (10) zone criteria now references the 2026 Municipal Revitalization Index instead of the 2023 index.
A new section 9 establishes detailed zone development plan requirements: municipalities must submit plans, may request up to 10 percent of their fund allocation or $125,000 (whichever is greater) for plan preparation, the authority has 14 days to approve or find deficiencies, and plans expire after five years requiring renewal.
A new section 29 creates a phased reduction schedule for the enterprise zone assistance fund: 100 percent available in fiscal years 1-5, declining by 5 percentage points each year to 75 percent by year 10, with the remainder deposited into the General Fund. It also establishes a weighted formula (50/50 split between distress metrics and taxable sales) for distributing funds among zones and appropriates $2.5 million annually for program administration.
A new section 13 establishes that all existing designated zones sunset at the end of the 10th state fiscal year following P.L.2021, c.197, and no new zones may be designated after that law's effective date, except for zones designated under the two new paragraphs (10) and (11), which remain in effect for 10 years from their own designation.
New provisions require municipalities to repay misused funds through forfeiture of future disbursements, establish carry-forward limits (unencumbered funds lapse after 3 years, unexpended encumbered funds lapse after 3 years), and subject fund administrators to the Local Government Ethics Law.
A new category (4) of qualifying municipalities is added: those in which the two additional enterprise zones are designated under paragraphs (10) and (11) of section 3 of P.L.1995, c.382.
